posted 08.10 a.m. est
Pre-open comment Friday 21st February
Following Wednesday’s Aggressive but Ineffective Selling, the red-at-bottom low was tested on Thursday. Buyers Responded immediately, quickly auctioning ES back to the 1835.50 poc, see previous highlighted comments. In the last three weeks I have marked Significant Buying eleven times and Significant Selling once. The first sign of LT weakness would be time below 1792.00. Time above 1835.50 would indicate higher.
ES intraday S/R = 1835.50 (6mn poc)
ES First Level Support = 1792.00
Stocks>50dyma numbers: Nyse 59% (from 55%), Nasdaq 56% (from 52%), R2000 53% (from 46%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 5.73. The recent high for the ratio at 7.50 in mid January was the highest in my database.
Supporting Charts
Bonds TLT: printed a 6mn high recently but then reversed. Strong price location but Momentum is down and now negative.
Gold GLD: Printed a 75day high on Thursday. Momentum is positive and up but chart is still in a LT weak price location.
Oil USO: Printing above 36.11, the 1/2R off September’s high, in an even stronger price location and yesterday reached its highest level since mid-October.
Dollar Index: currently printing just above the important 80.15 level. Dollar Bulls would want to see the chart hold 79.76, the maj poc.
EURUSD: Held the 9mn poc (1.3524) recently and Momentum is up and positive.
